Please don't pass it, do what you can do.

Health Economics Instructor: Jim Morton Homework Assignment 'i': Adverse Selection (not in book) 1. Sketch a graph of the perfect information equilibrium in an insurance market with two types of consumers, sick and healthy. 2. Why won't the perfect information equilibrium work when health status is private information. 3. Sketch a graph of a potential pooling equilibrium and explain why it won't work 4. Sketch a graph of a separating equilibrium that works. 5. Sketch a graph of a separating equilibrium that does not work